|
Roads bill with gas tax hike heads to Governor's waiting veto pen
A scaled back version of the DFL's huge transportation package moved forward Thursday night, passing easily in both the Minnesota House and Senate. Lawmakers amended the bill, knocking the Metro area sales tax for transit from a half cent down to a quarter cent. But the proposal still featured an eight and a half cent gas tax hike, which is why the debate consumed an entire day at the Capitol. "Can our economy afford that right now?" asked Republican Senator Julianne Ortman, "Can Minnesota families afford this gas tax increase? And an increase in the sales tax?" The author of the bill in the Senate, Democrat Steve Murphy of Red Wing said waiting for the right time to act will only make the problem worse and more expensive for taxpayers. "You can either pay me now, or pay later," Murphy told his colleagues making reference to the old Fram Oil Filters ad campaign, "I don't like the pay later thing. That means my grandson gets to pay for something he didn't have anything to do with." The package would pump an estimated $6.6 billion into highways, bridges and mass transit over the next decade. The vote comes on the heels of a report by the Legislative Auditor's describing the financial outlook for the Minnesota Department of Transportation as grim. Instant veto bait The bill now goes to Governor Tim Pawlenty's desk where it faces a certain veto. He killed a similar package last session, and has already promised to block this one too. The governor will have three days to act on the bill, setting up an override battle early next week. The tally of only 89 yes votes in the House was disappointing to supporters, who would have to garner 90 votes to undo a veto. In the past some of the Republicans who crossed party lines to back a fuel tax peeled off when it came down to the override ballot. The governor and Republican legislative leaders continue to predict his veto will be upheld. And Pawlenty's communications director, Brian McClung, told reporters Thursday that the changes made to the bill in an effort to compromise were "only cosmetic" in nature. He contends that Minnesotans battling inflation and a looming recession shouldn't have to new tax burdens. During the Senate debate Minority Leader David Senjem of Rochester urged members to wait until after the state's fiscal forecast numbers are in next Thursday. That's expected to show the red ink will grow from the $375 million deficit already projected in November. Other Republicans accused the DFL leaders of rushing to get to an override vote before that forecast arrives. "Wait for the economic forecast," Senator Ortman pleaded, "Surely we can wait 10 days to see if Minnesotans can afford 7.7 billion in new taxes. Will 10 days in the enactment here make any difference to the state?" Murphy was convinced it wouldn't matter when the vote took place. "Senator Ortman," Murphy asked, "If you're not for this now, what are you for? And when are you for it?" To tax or not to tax The bill would boost the state fuel tax by a nickel a gallon in the coming year. Another three and a half pennies would be added in the future, with the revenue devoted to paying off highway bond debt. Minnesota's gas tax has been fixed at 20 cents per gallon since 1988. "The gas tax is just another example of legislative arrogance!" Representative Tom Emmer, a Delano Republican, told his colleagues during the seven-hour debate in the House. If the bill became law, license tab fees would increase for new cars but not for cars already registered in Minnesota. The depreciation schedule would be slowed or streched over more years, so it would take longer to reach the current $35 minimum. The package also contains an income tax credit for lower income Minnesotans, to help off-set the fuel tax. Lawmakers on both sides of the aisle have noted the fuel tax is regressive, or harder on the poor, because it's based on miles driven rather than ability to pay. In an effort to gain more Republican votes, the Democrats agreed to amend the bill on the House floor to cut back the metro area sales tax for transit expansion from a half cent to a quarter cent. "This is an instant infusion of capital for jobs, long-delayed projects, and long-awaited projects, are able to get going," Minneapolis Democrat Frank Hornstein told colleagues. He said the decision to lower the sales tax for transit came on top of 17 other changes and compromises Democrats have made in the bill since the beginning of session to make it more palatable to Republicans. "Folks that's not compromise," objected Republican Mark Buesgens of Jordan, "We're taking from the taxpayers. Let's call this what it is and stop the spinning. My head's getting dizzy." Paying one way or another The plan would raise enough money, supporters contend, to replace or repair the state's most vulnerable bridges. The bill doesn't identify specific MnDOT projects, but allocates $600 million to 13 so-called "fracture critical" bridges on the state's trunk highway system. Democrats say the Governor's plan, to spend $400 million in general obligation bonds on local roads and bridges, doesn't address any of those state bridges directly. Representative Paul Marquart, a Dilworth Democrat, argued that Minnesotans are already paying a high price for rough roads indirectly through local property taxes. A lapse in aid from the state of Minnesota has forced local cities and counties to increasingly tap into property taxes for road and bridge projects. "And they got to spend more in their own pocket, it has to come from some where, it has to come from property taxes, the property taxpayers," Marquart remarked. That brought an onslaught of complaints from the other side of the aisle. "You're here selling a bill of goods," Rep Emmer argued, "You're here telling us this is going to result in a property tax decrease!" Marquart explained, "With this bill property taxes will be less than they otherwise would be without this bill." Republican Paul Kohls of Victoria waved a copy of the bill at Marquart. "They may reduce their property tax burden, but there's nothing in this bill today that promises one nickel of property tax relief." Key votes to watch in House The only Democrats voting against the plan in the House were John Lesch of Saint Paul and Mary Ellen Otremba of Eden Prairie. The six Republicans who crossed the aisle to vote for the transportion package were Jim Abeler of Anoka, Ron Erhardt of Edina, Rod Hamilton of Mountain Lake, Bud Heidgerken of Freeport, Norm Peterson of Bloomington and Kathy Tingelstad of Andover. Two of the Republicans who backed the bill in 2007, Dennis Ozment of Rosemount and Dean Urdahl of Grove City, voted against the 2008 version Thursday night. Both Ozment and Urdahl stuck with the Governor last May when Democrats launched a last-minute effort to override Pawlenty's veto. Two Democrats who opposed the override last year, Tom Rukavina of Virginia and Sandy Wollschlager of Cannon Falls were among the 89 yes voters Thursday.
|
 MORE HEADLINES |
|||||||||||||||||||||||||||||||
|
